CAIRO (Dow Jones Newswires), Dec. 28, 2010
Saudi Aramco said its planned 400,000 barrel-a-day refinery in the industrial city of Yanbu on the Red Sea will start production in 2014, a year later than planned, after ConocoPhillips (COP) pulled out from the scheme earlier this year.
The estimated $10 billion export refinery will process Arabian heavy crude oil to produce ultra-high-quality refined products to meet the most stringent global product specifications, the firm said in a statement late Monday posted on its website.
In April, ConocoPhillips announced its withdrawal from the Yanbu refinery project, which was originally set to be implemented on a joint-venture basis and expected to start production in 2013, in a bid to reduce its exposure in the refining and marketing business. Aramco since decided to implement the project without partner.
Announced first in 2005, the refinery in Yanbu, located some 350 kilometers north of Jeddah, was initially set to cost $6 billion to build. However, the project's price tag doubled to as much as $12 billion in 2008 when raw material and commodity prices peaked. Construction of the facility is now estimated to cost about $10 billion.
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